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This report[0] (from 2014, but the trends cited seem to have continued from other places) have cited the end of 2-year upgrade incentives (or rather, cheaper mo
by rtpg 11y ago
This report[0] (from 2014, but the trends cited seem to have continued from other places) have cited the end of 2-year upgrade incentives (or rather, cheaper monthly fees after 2 years) as a primary reason for a drop in cellphone sales.
In particular, in 2013 40% of respondants would upgrade phones after 2 years... in 2014 that number dropped to 15%.
At the same time, the number of people who said they would upgrade at "obsolesence" went from 15% to 35%.
There's a decent amount of evidence that 2-year contracts trigger a lot of phone upgrading. The end of that whole cycle is going to continue to cause pain to anyone selling cells.
[0]:http://reconanalytics.com/2015/02/2014-us-mobile-phone-sales-fall-by-15-and-handset-replacement-cycle-lengthens-to-historic-high/ http://reconanalytics.com/2015/02/2014-us-mobile-phone-sales...